LONDON, UK: Wheaton Precious Metals and its wholly-owned subsidiary, Wheaton Precious Metals International have finalized a definitive agreement with entities advised by Orion Resource Partners to acquire existing streams related to Ivanhoe Mines’ Platreef Project and BMC Minerals’ Kudz Ze Kayah Project.
Additionally, Wheaton International has entered into a new precious metals purchase agreement for a gold stream connected to Dalradian Gold’s Curraghinalt Project.
The total upfront cash consideration for the Platreef, Kudz Ze Kayah, and Curraghinalt Streams is $530 million, subject to customary terms and conditions. The transaction is expected to be completed in the fourth quarter of 2023 or early first quarter of 2024, a notice said.
Randy Smallwood, President, and CEO of Wheaton, expressed enthusiasm about the acquisition, “The acquisition of these diverse, high-quality streams fits seamlessly into our portfolio of high-margin, low-cost assets, with near-term production from Platreef significantly adding to our already robust growth profile.”
The Platreef Project, majority-owned by Ivanhoe Mines, is situated approximately 280 kilometers north-east of Johannesburg in the Limpopo province of South Africa. Under the agreement, Wheaton International is entitled to purchase a percentage of payable gold, palladium, and platinum from the Platreef Streams until certain delivery thresholds are met.
Key details of the Platreef Project (majority owned by Ivanhoe Mines, the “Platreef Streams”) include:
- Location: Approximately 280 kilometers north-east of Johannesburg, Limpopo province, South Africa
- Streamed Metals: Gold, palladium, and platinum
- Production Profile: Attributable production forecasted to average over 13,000 oz of gold, 8,500 oz of palladium, and 8,500 oz of platinum per year for the first ten years, increasing in the following decade.
- Production Payments: Ongoing payments based on a percentage of spot prices for delivered ounces.
Randy Smallwood emphasized the strategic advantage of the acquisition, “This Project has been significantly de-risked given the advancement of construction and development and is forecast to deliver significant precious metals production to Wheaton, commencing next year. We are also very impressed with Ivanhoe’s progress in working with the community and other stakeholders as it rapidly advances the Project towards production.”
The addition of these streams is expected to fortify Wheaton’s position as a key player in the precious metals sector, with a strengthened growth profile and an expanded portfolio of high-margin, low-cost assets.